A significant capital influx is expected in the crypto market over the upcoming months. Payments exceeding $6.8 billion are anticipated for creditors of FTX. This increase will occur following the court-approved repayment plan.
Approved Repayment Plan
The officially bankrupt exchange has reported that $12.6 billion will be refunded to customers. This amount is projected to rise to $16.5 billion as more assets are liquidated. Initial distributions are expected to be around $1.1 billion, providing much-needed support to the crypto market, particularly for Bitcoin 
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While FTX creditors will benefit from this payment plan, the process continues to gain momentum. Alex Thorn, Head of Research at Galaxy Digital Holdings, noted that these payments could reintroduce liquidity into the market. This situation could act as a catalyst for price movements of major cryptocurrencies.
Market Activity and Expectations
This structured payment plan enables the gradual return of funds to FTX creditors. The entire process is anticipated to take up to three years to address all claims. Controlled release of funds aims to prevent sudden fluctuations while also limiting potential market impact.
Benjamin Celermajer: “Some of this flow returning to crypto could provide a price catalyst for illiquid markets.”
Research firm K33 estimates that demand from FTX’s reinvestors is around $2.4 billion. However, they caution that the impact on the crypto market may be limited due to staggered payment distributions, which could extend throughout the coming year.
While immediate changes are not expected, the gradual influx of funds may stabilize and elevate market valuations over the coming months. The total amount to be paid out in this period will reach $6.8 billion.
